group owned by stockholders to whom company earnings are paid in the form of shareholder dividends. Under state laws, however, the interest of policyholders takes precedence over stockholder interests.
insurance company that is owned by stockholders, as distinguished from a mutual company that is owned by policyholders. Even in a stock company, however, policyholders interests are ahead of shareholder’s dividends.
business owned by stockholders, as contrasted to a mutual insurance company, which is owned by its policyholders. Many major life insurers are mutual companies whereas some leading property/casualty and multiline insurers are stock insurance companies.